REPAY Announces Appointment of Jake Moore as New Executive Vice President of Corporate Development and Strategy

ATLANTA–(BUSINESS WIRE)–Apr. 30, 2020– Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY” or the “Company”), a leading provider of vertically-integrated payment solutions, today announced the appointment of Jacob “Jake” H. Moore as Executive Vice President of Corporate Development and Strategy. Mr. Moore will be responsible for the Company’s M&A activities and overall strategic initiatives.

Mr. Moore has led REPAY’s corporate development strategy for more than three years, overseeing and supporting REPAY’s long-term growth strategy through the identification, assessment, and execution of the Company’s mergers, acquisitions, investments, and joint ventures. During his tenure, REPAY has completed five acquisitions across numerous end markets.

“Jake has been an integral part of our team, and we’d like to congratulate him on this new appointment,” said John Morris, CEO of REPAY. “Jake’s leadership has been instrumental in successfully executing our numerous acquisitions and recent go-public transaction. Strategic M&A will continue to be a core pillar of our overall growth strategy. His experience, both with REPAY and the industry, along with his strategic vision, will continue to be very valuable to us in achieving our organic and inorganic growth targets.”

Prior to joining REPAY, Mr. Moore was a private equity investment professional, serving as a Senior Associate at BlueArc Capital Management and as an Associate at Trinity Hunt Partners. He was also an investment banker in the Mergers and Acquisitions Group at SunTrust Robinson Humphrey.

Mr. Moore received his Master of Business Administration from Duke University’s Fuqua School of Business and his Bachelor of Arts in Economics and Political Science, magna cum laude, from Colgate University.

REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for lenders, while enhancing the overall experience for consumers.

Investor Relations Contact for REPAY:

Media Relations Contact for REPAY:
Kristen Hoyman

Source: Repay Holdings Corporation

Managing Delinquencies in Subprime Auto

Delinquencies were increasing before the virus outbreak. What happens now? Even before the massive drop in economic activity due to COVID-19, there were signs of trouble brewing on the subprime loan side of the auto lending market. Now more than ever, it’s important for subprime lenders to understand and effectively manage these delinquencies.

Subprime Loans by the Numbers

While a subprime borrower has a lower credit score and presents a greater credit risk than an average borrower, the definition of “subprime” in terms of credit score varies. For our purposes, we’ll consider subprime to be a credit score of less than 620.

Auto debt is the 3rd largest debt category in the US after mortgages and student loans. It now makes up 10% of total household debt. The Federal Reserve Bank of New York issues a quarterly household debt study and based on its most recent study, and as seen in the chart below, about 15% ($25 – 30 billion) of 2019:Q4 auto loans are considered subprime.

Auto Loan Originations by Credit Score

Per financial analyst Wolf Richter, severe delinquencies on subprime auto loans have exploded, surging to a new record as of February 2020. Out of the $1.3 trillion in auto loan and lease balances, we know around $25 billion are subprime. We also know that almost a quarter, approximately $66 billion, were 90+ days delinquent in the fourth quarter of 2019. And this was before the virus outbreak.

At 90+ days delinquent, we all know the unfortunate reality: these borrowers are unlikely to come back and make the balance current again. Here’s another interesting chart from the Federal Reserve Bank of New York, showing 2.5% of all auto loans are 90+days delinquent, up 0.5% since 2014 and steadily increasing (NY Fed Debt Survey, slide 14).

Serious Delinquency by Loan Type

Cox Automotive, owners of Kelley Blue Book & AutoTrader, reports that severely delinquent accounts are up 5.4% year over year, painting a tough picture for subprime auto lenders.

What Can Subprime Auto Lenders Do Now?

As a subprime auto lender, you are, in part, stuck with the paper you have in your portfolio. Loans have been written and need to be serviced. So what to do now? Here are some simple but effective steps to take:

  1. Be proactive and maintain contact with the investor groups that buy your loans.
  2. Expand your payment options to make paying on existing loans as easy as possible for borrowers. Consider online payments, IVR (Interactive Voice Response), and text pay so borrowers can pay via cards and bank accounts whenever they have the cash available.
  3. Adapt communication styles to your borrowers’ preferences – implement text messaging services to send payment reminders and account updates.
  4. Ensure all relevant paperwork is complete, so you have what you need if the loan goes south.
  5. Fine-tune and be ready to show your collection and repossession procedures to prepare for any incoming repossessions.

There’s not much else you can do with your existing loans as they move through the servicing cycle, but you can use this information when evaluating new loans. However, it’s important to keep in mind our upcoming post-COVID-19 world.

The NY Post reports IHS Markit projects 2020 auto sales will drop by 15% compared to 2019. The NY Times reports analysts estimate a drop of about 37% in 2020 Q1 due to March’s shelter in place orders.

There are so many unknowns right now. Will the $1,200 per person stimulus package be the only public stimulus? Will more consumer-friendly legislation follow? Will consumers use that $1,200 to pay down debt? Issues surrounding job and home security abound.

We simply don’t know what will happen on a personal or economic level.

The one piece of ‘good news’ for subprime lenders is that more borrowers will need your services in the future. Banks and credit agencies will continue reporting on consumers’ pay habits, even if borrowers are allowed a debt holiday or a forbearance. As credits degrade in the upcoming months, more will need your services to finance their next cars. If you put some safeguards in place, you may be able to make the most of the situation. These safeguards include:

  • Verifying current employment
  • Increasing down payments and lowering finance amounts
  • Confirming bank balances to ensure personal liquidity
  • Exercising caution when underwriting for consumers in the states of New York, New Jersey, California, Arizona, and Nevada, the most debt-heavy states (NY Fed Debt Survey, slide 32)
  • Carefully evaluating 18- to 29-year-old consumers, the demographic with the most trouble paying current bills (NY Fed Debt Survey, slide 26)

You know it’s going to be a tough time post-COVID-19, at least in the short term. However, there are concrete steps you can take to prepare your lending business for what’s coming next. How will you adjust?


REPAY Announces Partnership with TurnKey Lender

ATLANTA–(BUSINESS WIRE)–Apr. 8, 2020– Repay Holdings Corporation (NASDAQ:RPAY) (“REPAY”), a leading provider of vertically-integrated payment solutions, today announced its partnership with TurnKey Lender, a cloud-based lending software for evaluating borrowers, decision-making support, and online-lending process automation. REPAY and TurnKey Lender both serve the lending marketplace in the United States and Canada.

The integration between REPAY and TurnKey Lender will enable credit unions, finance companies, and lenders to fund loans 24/7 and subsequently accept loan payments via card and ACH directly through the TurnKey Lender platform as well as consumer-facing payment channels, including Interactive Voice Response (IVR)/phone pay, text pay, mobile apps, and white-labeled online portals.

“We believe our partnership with TurnKey Lender will create major efficiencies in loan servicing, payment collection, and reconciliation processes,” said Susan Perlmutter, Chief Revenue Officer of REPAY. “The integration between the two systems will create a seamless and convenient payment experience for our clients and their borrowers. We’ve assessed that Canadian lenders are largely underserved when it comes to payment options, so we’re excited about the opportunity this presents in filling a void and further empowering the Canadian lending marketplace with this powerful combination.”

“The partnership will streamline the onboarding process for new companies on both TurnKey Lender and REPAY systems by accelerating legal verification and technical connection procedures for new customers who want to use online payment processing,” said Elena Ionenko, Chief Business Development Officer of TurnKey Lender. “Customers can elevate their business operations with lending and payments services at the same time to see substantial growth with their financial transactions, an important win in today’s digital first environment.”

About TurnKey Lender
TurnKey Lender is changing how businesses everywhere succeed. The company puts state-of-the-art lending software in the hands of businesses of all sizes, using proprietary technology that securely digitizes every step of credit management. Clients of TurnKey Lender’s end-to-end platform represent an array of industries, from traditional lenders to innovative retailers and service providers eager to boost point-of-sale and mobile purchasing support for their valued customers.

REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for merchants, while enhancing the overall experience for consumers.

Investor Relations Contact for REPAY:

Media Relations Contact for REPAY:
Kristen Hoyman

Media Relations Contact for TurnKey Lender:
Lisbeth Garassino

Source: Repay Holdings Corporation